Have you ever thought about what would happen if you were unable to work due to an illness or injury? Income Protection Insurance can provide you with financial security in the event that you are unable to earn an income. In this beginner's guide, we will explore what Income Protection Insurance is, who can benefit from it, and what it covers.

What is Income Protection Insurance?

Income Protection Insurance is an insurance policy that provides you with a replacement income if you are unable to work due to an illness or injury. It is designed to protect your income and ensure that you can still pay your bills and maintain your lifestyle, even if you are unable to work.

Who can benefit from Income Protection Insurance?

Anyone who relies on their income to pay bills, mortgages, and other expenses can benefit from Income Protection Insurance. It is particularly beneficial for those who are self-employed or do not receive sick pay from their employer. However, even those who do receive sick pay from their employer may find that it is not enough to cover all their expenses in the event of a serious illness or injury.

What does Income Protection Insurance cover?

Income Protection Insurance can cover a wide range of illnesses and injuries, including cancer, heart attack, stroke, and other serious illnesses. It can also cover injuries sustained in accidents or through other means. The policy will pay out a regular income until you are able to return to work or until the end of the policy term.

What is not covered by Income Protection Insurance?

It is important to note that Income Protection Insurance will not cover you for any illnesses or injuries that you were aware of at the time you took out the policy. Additionally, some policies may have exclusions for certain pre-existing medical conditions. It is important to read the policy carefully and understand what is and is not covered.

How much does Income Protection Insurance cost?

The cost of Income Protection Insurance can vary depending on a number of factors, including your age, health, and the level of cover you require. However, it is generally more affordable than many people think. Premiums can be paid monthly or annually, and the cost can be tax-deductible.

What other benefits are available?

In addition to providing a replacement income, many Income Protection Insurance policies offer additional benefits. These can include access to counselling services, rehabilitation, and support to help you get back to work. Some policies may also include a lump sum payment in the event of a permanent disability.



In conclusion, Income Protection Insurance can provide you with peace of mind and financial security in the event that you are unable to work due to an illness or injury. It can cover a wide range of serious illnesses and injuries, and can provide additional benefits to help you get back to work. If you are self-employed or do not receive sick pay from your employer, it is definitely worth considering Income Protection Insurance.